It looks like someone linked you here to our printer friendly page.
Please make sure you go Back to Safehaven.com
for more great articles just like this one!

Junior Mining Investing with $5,000 to $10,000

By: Dudley Baker | Tuesday, December 18, 2012

Not all investors are flush with cash to put into the natural resource sector
and frequently we are asked the question, "Dudley, how much do I need to get
started"?

Perhaps your $5,000 to $10,000 will not go far in buying the top companies
on the NYSE or the Toronto Stock Exchange, but in the junior mining sector,
you will be amazed what you can accomplish. You can actually buy thousands
and thousands of shares.

We have seen some recent studies that of the shares trading on the TSX and
the TSX Venture Exchange approximately 42% are trading at less than $0.10 and
another 20% are trading between $0.11 and $0.19 and many of these junior mining
companies are very low on cash.

Thus with 62% of the companies on the TSX and the Venture Exchange selling
for less than $0.20 investors have an opportunity to get started investing
in this sector with a small amount of money.

Yes, these are 'penny stocks' and the challenge is to uncover those companies
which have the potential to perform well in the coming months. The risk is
incredibly high but so is the potential reward.

There are some great junior mining opportunities buried in those 2,000 companies
which have some cash, great properties and good management but of course the
ultimate challenge is discovering the special opportunities which have the
potential to make you a lot of money, possible, 500%, 1,000% or more. This
can definitely be accomplished with some research, attending conferences or
following some of the top newsletters in this sector.

There are also many interesting opportunities selling in the $0.30 to $0.50
range meeting our high standards which can be added to one's portfolio.

We could write volumes on how to find these opportunities but for now we would
like to tell you how to invest in these shares once you have found them and
will as little as $5,000 to $10,000.

First, we would spread these monies over a minimum of 4 to 6 companies. With
$5,000 we would look to buy 4 positions in the junior mining sector and with
$10,000 we would spread the money over 6 positions thus giving investors more
opportunities as well as diversifying the risk. With the $10,000 dollars we
would also include two additional companies selling at higher prices and perhaps
with current production.

For example with $5,000:

A - silver selling at $0.05

buy 25,000 shares

$1,250

B - silver selling at $0.50

buy 2,000 shares

$1,000

C - gold selling at $0.06

buy 25,000 shares

$1,500

D - gold selling at $0.30

buy 4,000 shares

$1,200

Total

$4,950

For example with $10,000:

A - silver selling at $0.05

buy 30,000 shares

$1,500

B - silver selling at $0.50

buy 3,000 shares

$1,500

C - gold selling at $0.06

buy 30,000 shares

$1,800

D - gold selling at $0.30

buy 5,000 shares

$1,500

E - silver selling at $1.00

buy 2,000 shares

$2,000

F - gold selling at $0.75

buy 2,000 shares

$1,500

Total

$9,800

As you can see we suggest you accumulate a basket of shares each of which
has the potential to make you substantial gains but with the full awareness
that not all of these position may work out. If only a few shares perform well
you can still make a significant amount of money on these investments.

The timing is perfect for all investors to get started in the resource sector.
Most of the shares are trading at historic lows and most newsletters and analysts
are expecting a banner 2013 for gold, silver and the shares. It's time for
you to get in the game.

Dudley Pierce Baker is the owner and editor of Precious Metals Warrants. PreciousMetalsWarrants provides
an online subscription database for all warrants trading on junior mining
and natural resource companies in the United States and Canada.

Disclaimer/Disclosure Statement: PreciousMetalsWarrants.com is not
an investment advisor and any reference to specific securities does not constitute
a recommendation thereof. The opinions expressed herein are the express personal
opinions of Dudley Baker. Neither the information, nor the opinions expressed
should be construed as a solicitation to buy any securities mentioned in this
Service. Examples given are only intended to make investors aware of the potential
rewards of investing in Warrants. Investors are recommended to obtain the
advice of a qualified investment advisor before entering into any transactions
involving stocks or Warrants.